The report also contains the forecasted accounts for the coming year.
1. Mission and Objectives We intend to create pleasant, comfortable, well designed furniture based on new technology in accordance with the customers’ requirements. We will provide the best product in the market and want every penny spent with us to be well spent.
- Thesis Statement
- Structure and Outline
- Voice and Grammar
We seek to provide excellent customer service and dedicated commitment to the quality of our products. Our objectives are as follows: 1. 1 Focus on customers’ needs and generate sales beyond E million by the end Of June 2012. 1.Generate the gross profit mark up Of 1. 3 Produce the net profit of IEEE,OHO by the end of June 2012. 2. Company’s Overview 2.
1 Company s Name The business will be operated through limited company whose name will be BEST BESPOKE FURNITURE LTD and its specialist will be manufacturing bespoke furniture for the high end market. The company’s name is checked in the Companies House website and this name is available. 2. 2 Company’s ownership Best Bespoke Furniture Ltd will be owned 100% by a single shareholder who will also serve as the director of the company.The company will be employing three sales assistants to carry on day to day activities, a driver and three highly skilled furniture manufacturers to manufacture the furniture. The simple structure will give the company an edge on its decision making and day to day involvement of owner into the business & will also keep the company focused toward its mission and objectives. 2.
3 Company’s location and facilities The company’s main selling office will be located at Knightsbridge, London and manufacturing will take place in the Industrial area located within MOM.Knightsbridge is a prestigious area and vary famous to wealthy people and celebrities. In addition, the presence of wealthy Arab (Middle-eastern) population in this area will increase our sales potential. There is a London underground Station at Knightsbridge and the area is easily accessible by various T FL buses, it is situated at one corner of Hyde Park. The area has also been taken out from the London congestion charging zone recently.
3. Products Best Bespoke Furniture Ltd will specialize in designing and manufacturing solid wood furniture that will be designed according to the customers’ acquirement.Thus enabling the customers to choose product specifications, size, material and finish of the product. We will produce all the products in our own factory from selected high quality wood that will give customer a piece of mind and will last for lifetime.
3. 1 Products range Dining room furniture: Dining sets, chairs, tables and Sideboards Living room furniture: Sofas, Bookcases, Dressing table, Desks Bedroom furniture: Beds, Bedside tables, Chest of drawers, Wardrobes 3. Competitive comparisons There are number of generalized furniture retailers in the market who sell the tankard furniture to middle class customers. Our niche will be wealthy customers and there are quite few businesses offering these products. Our company structure, showroom location in Knightsbridge, and manufacturing factory within MOM, use of latest technology and employing of highly skilled workers and dedicated customer service will give us competitive advantage within our niche market. 4.
Marketing and Sales Strategy 4. Target Market Our target market is the customers who want to have very fine home furniture with the latest technology combined with British tradition and way f living. The customers appreciate the quality and are less concerned about price constraints. We are not intended to satisfy all home furniture customers but to those who are demanding high-end buyers and willing to pay for the quality of the furniture workmanship and design excellence.
Our target customers are those who make the choice by quality and not the price. . 2 Pricing Strategy Our pricing will be quoted on job to job basis depending upon the customers’ requirements which will take into account the materials, labor hours, factory overheads and 50% cost plus profit pricing approach. We do not intend to compete with the price at the lower end of the market. 4.
3 Promotion Strategy Our strategy focuses on identify the high- end buyers, so will take part in the major exhibitions taking place in London to promote our products.We will also seek to promote our products on internet through our comprehensive website. During the first year, our specialized sales team will be contacting the high- end buyers by telephone and in-house catalogue will be sent to the potential buyers.
5. Company Finances 5. 1 Methods of finance The company will be financed by equity of El 00,000 and loan Of E 150,000.
The equity finance will be provided by the owner of the company and debt financed will be obtained from the bank on private lender.These funds will be used for setting up the business and to finance the working capital. The company’s start-up cost, monthly fixed cost and variable cost is detailed below: 5.
2 Analysis of Budget and Cash Flow Forecast The budgeted profit and loss account and cash flow forecast is shown on the subsequent pages of this report. The Budget is prepared on the basis that ruing the first quarter company sales revenue would ASK, ASK, and ASK and thereafter sales would increase significantly due to Christmas period and our marketing.The sales are expected to decrease in January 201 2 after the Christmas and expected to regain momentum from March 2012. At the end of the year it is expected that the company will make profit of IEEE,190. The loan would be taken on the term of 3 years at the interest rate of 8. 8% and will be repaid together monthly together with the interest. At the end of year the company is expected to declare the dividends Of E 150,000 out Of the refits of the company.
In addition to this a pessimistic budget and cash flow forecast is included in this report.This indicates that in case of slow growth in sales revenue, the company will make a modest profit of EYE ,965. During this scenario the company will not pay the dividends and will retain the profit for the future year. 6. Conclusion London is one of the richest city in the world and Knightsbridge is located at heart of the capital, which means that there is a huge market for the Best Bespoke Furniture for the best of best customers whose main concern are he quality and not the price.